The 1974 Memorandum of Understanding (MOU) between Australia and Indonesia was a goodwill attempt to recognise the long-standing interests of Indonesian fishermen in the northern Australian region. Bajo originating from the villages of Mola and Mantigola in the Tukang Besi Islands, Southeast Sulawesi, are one group of fishermen who have a historic interest in the region and currently operate in and around the MOU area. This paper examines the effectiveness of the MOU in providing for recognition of indigenous Bajo fishing rights, sustainable marine resource conservation and management, and in curbing illegal Bajo fishing activity in the Australian Fishing Zone.